News

Santos today announced first gas from the third and final well of the Bayu Undan infill well program, and delivery of the whole project under budget and ahead of schedule.

A final investment decision was made in January last year as part of the long-term development plan for the Bayu Undan gas/condensate project, located in the Timor Sea. The drilling program consisted of two platform wells and one subsea well connecting into existing offshore infrastructure.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “This drilling campaign has been very successful, providing strong subsurface results, with the whole project having been executed approximately 40% below budget and the final well brought on-line over three months ahead of schedule.”

“The program’s success means that we have delivered higher liquids production and increased offshore well capacity. Operator ConocoPhillips has done an excellent job in executing such an efficient drilling program,” Mr Gallagher said.

The wells were drilled with the Noble Tom Prosser rig, which has now been contracted by Santos to undertake a 2019 drilling program, including appraisal of the recent Dorado oil discovery offshore Western Australia.

Santos holds an 11.5% interest in the Bayu Undan joint venture and the Darwin LNG plant, both operated by ConocoPhillips.

Santos also has a 25% interest in the Barossa joint venture. The Barossa gas field is currently in front end engineering and design and is the leading candidate to backfill Darwin LNG when Bayu Undan production ceases. Barossa would more than double Santos’ production in Northern Australia with a final investment decision targeted for late 2019.

The Northern Territory Government is committed to developing a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting our environment.

With indications that the shale gas reservoirs in the Beetaloo Sub-basin are of global significance, it is important that we enable this substantial industry to expand in a well-regulated and planned manner from the outset. Two legislative amendment bills were passed in Parliament last week. This is in response to government’s commitment to implement all of the recommendations outlined in the Final Report from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Two companies, Origin and Santos, have received approval to install up to two groundwater monitoring bores near potential exploration sites in the Beetaloo Sub-Basin.

The approval is in line with recommendation 7.11 of the Independent Scientific Inquiry into Hydraulic Fracturing, which requires the collection of six months of baseline groundwater data in preparation for future activities at these sites.

The companies will be required to provide laboratory reports to the NT Government and the data will be published online.

Approval has not been sought or given for any petroleum well drilling or hydraulic fracturing activity.

In line with another recommendation from the Inquiry (14.27), an Onshore Gas Non-Compliance Hotline has also been established as a way for people to report potential non-compliance of the onshore gas industry in the Territory.

The 24-hour toll-free hotline number is 1800 413 889. Calls can be made anonymously.

Quotes from the Minister for Primary Industry and Resources, Ken Vowles:

“The Territory Labor Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable.

“Territorians can be assured our Government is faithfully implementing all of the 135 recommendations of the Independent Scientific Inquiry into Hydraulic Fracturing.

“This water monitoring forms part of just one of those recommendations and will allow the water to be tested for key water quality indicators prior to any exploration approvals for hydraulic fracturing being given.

“The results from this monitoring will build on a range of environmental baseline data being collected as part of implementing the 135 recommendations, including methane monitoring and regional groundwater monitoring being undertaken by CSIRO/GISERA.”

Shell Australia welcomes Rob Jager to Perth as the new VP Prelude, taking the reins from David Bird who will be finishing his assignment on 30 November 2018. Rob moves to Perth from New Zealand, where he was the Country Chair & VP for Shell New Zealand / Shell Taranaki for more than 13 years. Shell announced the sale of its New Zealand interests in March 2018.

"It is a privilege to join Shell Australia and lead Prelude to successfully deliver gas to our customers across the globe. My focus will be the safe start-up and reliable operations of Prelude in the years to come” he said.

David Bird has been leading Prelude since 2015. He said that he has seen Prelude shift from a project under construction in Geoje, South Korea, to a facility safely moored offshore and being commissioned.

“To see Prelude now moored off the coast and being commissioned gives me a great buzz” he said.

“Thank you to the extremely motivated team both within Shell and across our partnerships, contractors and community. It has been a pleasure working with you all. I leave Prelude in Rob’s very safe and experienced hands and will continue to watch with interest as Prelude moves into its next phase of steady operations”.

Darwin, Australia – The Prime Ministers of Japan and Australia last night joined celebrations in Darwin marking the official opening of the INPEX-operated Ichthys LNG facilities.

The two national leaders, His Excellency Mr Shinzo Abe and the Hon. Scott Morrison MP, congratulated INPEX on its historic milestone at a gala dinner at the Darwin Convention Centre.

INPEX President and CEO Takayuki Ueda said it was a tremendous honour to have two Prime Ministers speak at the INPEX celebration event.

“This is a remarkable global project that will provide lasting benefits to Australia and energy security to Japan for generations to come. It also signifies a new chapter in strengthened trading ties and relationships between Australia and Japan through Darwin, Australia’s gateway to Asia.”

The Ichthys LNG Project is the first large-scale LNG project to be operated by a Japanese company, and is the product of the largest foreign investment ever made by a Japanese company. At peak production, Ichthys will produce 8.9 million tons of LNG per year, of which approximately 70 percent will be supplied to Japanese customers.

Ichthys LNG Project commences LPG shipment

INPEX CORPORATION also announced yesterday that the Ichthys LNG Project commenced shipment of liquefied petroleum gas (LPG) from the onshore LNG processing facilities in Darwin. The first shipment of LPG is destined for Asia.

Ichthys LNG has already commenced shipment of condensate (ultra-light crude oil), that was announced on October 1, 2018, and of liquefied natural gas (LNG), announced on October 23, 2018.

Darwin, Australia – A landmark celebration has officially opened the onshore LNG processing facilities of INPEX-operated Ichthys LNG – one of the largest and most complex resource developments in the world.

Japanese, Australian and Northern Territory government representatives unveiled a plaque to commemorate four decades of future benefits Ichthys LNG will bring to the Northern Territory, Australia, Japan and the region.

Symbolising the collaboration inherent in global enterprises on the scale of Ichthys LNG, Mr Hiroshige Sekō, Japanese Minister of Economy, Trade and Industry, Senator the Hon. Simon Birmingham, Australian Minister for Trade, Tourism and Investment, Senator the Hon. Matthew Canavan, Australian Minister for Resources and Northern Australia and The Hon. Ken Vowles MLA, Northern Territory Minister of Primary Industry and Resources united to declare the site officially opened.

INPEX CEO, President and Representative Director, Mr Takayuki Ueda said today’s official opening was the culmination of a truly remarkable global enterprise over the last 20 years, and paid tribute to all involved.

“We are standing here today thanks to the contributions of tens of thousands of people drawn from many nations across the world.” Mr Ueda said.

“Ichthys LNG is an iconic project. We are very proud of the economic and social contributions INPEX and Ichthys LNG have made to date – along with 40 years of future operations that will provide lasting economic and social benefits for Australia and energy security for Japan.”

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers. Ichthys LNG will help to meet growing energy demand in the region, while contributing to the Australian way of life.

Media release from the Chief Minister office: Follow this link for a press release regarding an MOU signed between the Northern Territory and Australian Governments that will help realise existing offshore gas reserves and the potential of the Beetaloo Sub-Basin as a new world-class gas province.

Darwin, Australia: INPEX, on behalf of Ichthys Joint Venture participants, is proud to announce the signing of a landmark $24 million benefits agreement with the Larrakia people in Darwin.

The 40-year agreement is considered the most significant long term package of benefits and opportunities provided outside of Native Title obligations.

The signing of the agreement marks the culmination of more than a decade of relationship building and collaboration between INPEX and the Larrakia people.

The INPEX Larrakia Advisory Committee, which includes representation from the Larrakia Development Corporation and Larrakia Nation Aboriginal Corporation, will oversee the distribution of benefits to Larrakia people. Initially, the focus is expected to be on education initiatives and on the support of the elderly members of the community.

INPEX Larrakia Advisory Committee Chairman Bill Risk said INPEX was the first company in the Northern Territory to engage Larrakia to undertake heritage surveys to ensure the protection of their cultural heritage for future generations.

“This is an agreement built on a foundation of trust and respect between INPEX and Larrakia,” Mr Risk said.

“We are both salt water people, we respect our Elders and we celebrate rich cultures in our daily lives,” Mr Ito said.

“Ichthys LNG has benefitted enormously from the support of the Larrakia people over many years. INPEX looks forward to building on our strong relationship with the Larrakia people for decades to come.”

INPEX, on behalf of the Ichthys Joint Venture already provides:  a scholarship program for Larrakia tertiary students to undertake studies at any university in Australia;  a funding program for primary and secondary Larrakia school students; and  an air conditioning program for Elders and people with disabilities.

RENEWABLES will account for 40% of global energy mix, more than individual fossil fuel energy sources, and Australia is in a prime position to leap ahead of the rest of the world and claim the crown of world’s largest hydrogen producer exporter according to the latest World Energy Outlook released from by the International Energy Agency.

The 2018 annual forecast revealed that renewables, including hydrogen produced from solar, will overtake coal and other fossil fuels by 2040 to account for more than 40% of the global energy mix under the IEA Sustainable Development Scenario.

In power markets, renewables have become the technology of choice, making up almost two-thirds of global capacity additions to 2040, thanks to falling costs and supportive government policies.

This is transforming the global power mix, with the share of renewables in generation rising to over 40% by 2040, from 25% today, even though coal remains the largest source and gas remains the second-largest.

Over the last 12 months wind and solar alone accounted for nearly half of all new capacity.

However it is hydrogen that the authority identified could potentially be one of Australia's biggest opportunities for expansion, if hydrogen infrastructure was developed in conjunction with solar and wind plants.

According to the report, developed counties with a high level of resources could provide nearly 100 million tonnes of oil equivalent of hydrogen - which would be the same output as 3% of global gas consumption today.

The authority's attention to hydrogen mirrors sentiments from Australia's chief scientist, Dr Alan Finkel, who says hydrogen exports could be a multi-billion dollar opportunity for Australia.

The IEA used a Sustainable Development Scenario, which took into consideration changing government policies in response to the Paris Agreement and climate change reduction measures undertaken by world leaders in the development of the outlook.

"Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear; the world's energy destiny lies with government decisions," IEA executive director Dr Fatih Birol said.

"Stable support policy frameworks help drive down costs, in turn providing for increasing policy support while maintaining energy affordability."

The BESS will help to support cheaper and cleaner power for Territorians and is an important step forward in achieving the Territory Labor Government’s target of 50% renewable energy by 2030.

The Government-owned Territory Generation’s new battery will provide reliable, secure, and cost-effective electricity supply for Territorians and for business. It is also one of the largest grid-connected storage solutions in Australia.

During high solar penetration periods such as in the middle of the day, solar can currently supply up to 40% of the Alice Springs power needs. It is projected that BESS will support an increase of this supply up to 50%.

Other features of the new 5MW battery include:

• Provide a near-instant response to variations in solar load, particularly during cloud cover, and it will improve power generation reliability for the region

• The system has a 5MW capacity, combined with 40 minutes of storage capability, and it is capable of flexing to 8MW for six seconds and 7.5MW for 60 seconds

It is projected that the $8.3 million investment for the battery system will be recouped in four to five years due to efficiency improvements.

The battery system has already provided power into the grid through its rigorous testing and by the end of November it will be fully integrated into the Alice Springs power system.

Since the release of the Roadmap to Renewables Report some of the Territory Labor Government’s other key investments include:

• $40 million private sector investment in the Katherine Solar Farm project that will be the largest renewable energy generator in the Northern Territory. This solar project will increase renewable energy use in the Territory and provide enough power for 8,000 homes

• $59 million joint investment with ARENA for the Solar SETuP program providing 10MW of solar across 25 remote communities. This program is nearing completion. It will also reduce diesel use and take trucks off the roads

• $750,000 to Power and Water to develop and validate a dynamic system model which will ensure that increasing levels of renewable energy can be integrated into the grid in a stable and predictable way

“The Territory Labor Government’s number one priority is creating local jobs. Delivering 50% renewables by 2030 will deliver local jobs, and cheaper, cleaner power.

“We are investing in Alice Springs to achieve our renewable energy target and become the Solar Capital of Australia. The new Alice Springs Battery Energy Storage System is an important piece of infrastructure that will enable us to integrate more renewables, and provide increased reliability of supply to homes and businesses in Alice Springs.”

Quotes from Territory Generation CEO, Tim Duignan

“Territory Generation’s Battery Energy Storage System will provide near-instantaneous response to changes in solar load, such as cloud cover.

“Reliability and stability of base load power is a critical barrier in the uptake of renewable energy across Australia, and I am pleased that we are at the forefront of tackling this issue right here in Alice Springs.

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